Structure and form of commercial contracts


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Commercial expert
Practice notes

Structure and form of commercial contracts


Published by a ÀÏ˾»úÎçÒ¹¸£Àû Commercial expert

Practice notes
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This Practice Note describes the structure and form of a business to business commercial contract or agreement. It outlines the form which commercial agreements generally take and explains what information should be included in the contract document, including in the parties, background (or recitals), main body, schedules and attestation sections.

Form of commercial contracts

How a contract is formed

A contract is a legally binding agreement that grants rights and creates duties between two or more parties. Contract law principles provide that for a contract to exist, four key elements must be present:

  1. •

    offer (see Practice Note: Forming enforceable contracts—offer)

  2. •

    acceptance (see Practice Note: Forming enforceable contracts—acceptance)

  3. •

    consideration (see Practice Note: Forming enforceable contracts—consideration), and

  4. •

    an intention to create legal relations (see Practice Note: Forming enforceable contracts—intention to create legal relations)

Simple contracts v deeds

Simple contracts may be created orally, by conduct or in writing.

Certain types of simple contracts however must be created in writing. For details, see Practice Note: Contracts required to be in writing.

Some agreements require greater

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Jurisdiction(s):
United Kingdom
Key definition:
Contract definition
What does Contract mean?

A contract is a legally binding promise (oral or in writing) by one person to fulfil an obligation to another person in return for consideration. A binding contract comprises four elements: offer, acceptance, consideration and intention to create legal relations.

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